Research Report for Nutrastar International Inc. (NUIN)

by China Growth Partners Inc.

June 15, 2010

1

2

Safe Harbor Statement

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:

Any statements set forth herein that are not historical facts are forward-looking statementsthat involve risks and uncertainties that could cause actual results to differ materially fromthose in the forward-looking statements.Potential risks and uncertainties include, but are not limited to, such factors asunanticipated changes in product demand, interruptions in the supply, downturns in theChinese economy, changes in applicable laws and/or regulations, and other informationdetailed from time to time in the Company's filings and future filings with the United StatesSecurities and Exchange Commission. Accordingly, although the Company believes that theexpectations reflected in such forward-looking statements are reasonable, there can be noassurance that such expectations will prove to be correct.

3

Disclaimer & Disclosure

China Growth Partners Inc. is not an investment advisor and this material is not a solicitation or recommendation to buy, sell, or hold securities. All statements and opinions contained in this presentation are the sole opinion of the authors and are subject to change without notice. We are not liable for any investment decisions made based on this presentation.All statements and opinions contained in this presentation are based on public information and information from resources that we believe to be correct. We disclaim any and all liability as to the completeness or accuracy of the information and for any omissions of material facts not made known to us. Investing in equities involves risk and you can lose some or all of your investment. This investment may not be suitable for all investors. Investors should consider their specific investment goals, objectives and risk tolerance before investing. Consult an investment advisor or financial planner prior to making any investment decision.China Growth Partners Inc. has been hired by American Capital Ventures who has been engaged for investor relations by Nutrastar International. China Growth Partners Inc. has received $20,000 USD in compensation for this presentation. As per our preferred business model, China Growth Partners Inc. is investing 50% ($10,000 USD) of our fee in shares of NUIN.OB in the open market and will hold those shares for a minimum of 12 months from the date of this presentation. After such time, China Growth Partners Inc. may retain or sell its shares at its sole discretion. American Capital Ventures has hired China Growth Partners Inc. to provide opinions for other issuers.

• Company Overview

• Key Investment Points

• About Chinese Golden Grass / Company Products

• Global Market for Chinese Golden Grass

• Barriers to Entry by Competitors

• Patented Processes

• Products

• Sales and Distribution

• Margins

• Revenue Breakdown

• Growth Trends

• Balance Sheet

• 2010 Outlook

• New Product Launches

• Distribution Expansion

• Management

• Summary and 12 Month Price Target

• Contacts4

Contents

Nutrastar International Inc. is a nutraceutical company engaged in the production and distribution of Chinese Golden Grass based organic and specialty food products.

Chinese Golden Grass is one of the most highly regarded and sought after nutrients in Chinese Culture. Nutrastar is the worlds largest producer.

Operations are based in Harbin, the capital of Heilongjiang Province and the 10th largest city in China (population 10 million)302 employees- with 21 in R&D and 132 in sales and marketingDistribution network covers more than 10 provinces in China

5

Overview

Ticker: NUINFiscal Year End: Dec. 31st

Recent Price: $3.15 (on 6/10/2010)

52 Week Range: $1.01-$5.00Shares Outstanding: 14,312,731Cash Flow From Operations: $9.3M USD

Market Cap: $45.8M USD

2009 Revenue: $15.3M USD

2009 Net Income $7.7M USD

2009 EPS: .58Trailing PE: 5.3

Legal: Pillsbury Winthrop Shaw Pittman LLPNew York, NYAuditor: AGCA, Inc.Arcadia, CA

6

Overview

100%100%

Nutrastar International Inc.(Nevada)

New Zealand WAYNE’S New Resources Development Co., Ltd. (BVI)

100%

Heilongjiang Shuaiyi New Energy Development Co., Ltd. (PRC)

Daqing Shuaiyi Biotech Co., Ltd. (PRC)

Harbin Shuaiyi Green & Specialty Food Trading LLC (PRC)

100%

Corporate Structure

• Leadership Position

– Worlds largest Golden Grass planting base

– 19% market share in China for Golden Grass products

– Annual production capacity of 55 tons & expanding to 65 by end of 2010

• Global demand estimated to be 5x greater than China’s total production capacity

• High barriers to entry (patented biotechnology used in cultivation process, with additional patents pending)

• Extremely high margins (70.2% for2009, increasing to 77.9% in the first quarter of 2010 )

• 66% management ownership

• Strong Research and Development program in cooperation with the China Institute of Science

• Expansion of sales and distribution network currently underway

• Strong balance sheet with $23.3M USD cash

• Steady cash flow from operations ($9.3M USD in 2009)

• Very low Accounts Receivable balance/many customers pay cash upfront

• 2010 “make good” net income $9M USD

• 2011 “make good” net income $11M USD

7

Key Investment Points

Investment Highlights

8

Chinese Golden Grass

Chinese Golden GrassCordyceps Militaris

Chinese Golden Grass, (Cordyceps Militaris), is a speciesof parasitic fungus that is typically found in the north-eastern mountains of China. It is a precious ingredient inTCM (Traditional Chinese Medicine) as it is widely believedto offer high medical and health benefits by nourishingthe yin, boosting the yang, and improving lung and kidneyfunction. Both Eastern and Western research has shownthat Cordyceps Militaris may boost the immune systemand can be used as a supplement for the treatment ofhypertension, in the treatment of certain canceroustumors, and has been used in treating arteriosclerosis andgastrointestinal disorders.

In addition to TCM compounds, Chinese Golden Grass is used in organic and specialty foods,beverages, and other products in China.

An October 2009 research report by the Freedonia Group states that demand fornutraceutical ingredients worldwide is projected to advance 6.2 percent annually to $21.8billion USD in 2013. Moreover, the report emphasizes that China and India will emerge asthe most rapidly expanding nutraceutical ingredient markets as strong economic growthallows them to upgrade and diversify food, beverage and drug production capabilities.

Global Markets for Chinese Golden Grass are mainly in the United States,Canada, Japan, Korea, Hong Kong and Southeast Asia. The European andAustralian markets are also emerging.

According to Market Survey of Cordyceps Militaris 2008, published by The China Market Monitoring Center, the current international market demand for Cordyceps Militaris is about 1,000 tons a year while Chinese domestic market demand is about 500 tons/year with an annual growth rate of over 13%. With about 50 Cordyceps Militaris manufacturers in China having an aggregate production capacity of only 250 tons/year, demand is running 2X greater than supply in China.

As a result of this tremendous demand , management has reiterated their confidence to China Growth Partners in meeting the $9M USD and $11M USD in net income targets for 2010 and 2011 respectively.

9

Global Market

Wild Cordyceps Militaris (Chinese Golden Grass) can cost as much as$10,000 USD per kilogram according to Georges M. Halpern’s HealingMushrooms. Due to a large and growing demand for Chinese GoldenGrass, wild strains have been severely depleted and harvesting is nolonger permitted without government approval.

10

Barriers to Entry

Nutrastar is the market leader in China with a 19% market share, and operates the world’s largest single source for cultivated Cordyceps Militaris according to the company’s filings.

Multiple Barriers for Competitive Entrants:

Extremely sensitive growing conditions- very difficult to grow in a man-made environment

Nutrastar developed the patented technology to commercially grow and produce Cordyceps Militaris

Existing competitors are small-sized local producers with much lower production capacity and less advanced growing and production technology

As a result of the difficulty in cultivating Chinese Golden Grass, the extreme rarity of wild strains with government regulations against harvesting them, and Nutrastar’s market leading position with patents and patents pending in it’s cultivation, barriers to entry for new competitors are strong and margins should remain high*.

*Gross margins averaged 70.2% for 2009 and increased to 77.9% in Q1 of 2010

Spawn running:

Propagated strains require spawn running with

and without light. After about 30 to 35 days, the

myceliums are mature.

11

Patented Cultivation

Nutrastar’s highly successful cultivation process is patent-protected.

Major Ingredient:

Mainly wheat, rice, etc.

Minor ingredient:

Culture fluid formulation

Wild strains:

Artificially selecting wild strains

2 31

Shaking table:

Culture fluid formulation and wild strains

placed into the shaking table & propagated

Special steamer:

Plant strains into the culture medium after high

temperature sterilizing.

45

Inoculation:

Propagated strains are placed into the

culture medium.

67

Cultivation:

Period of growth in the presence of light at

a certain temperature and humidity.

Harvest:

After growing about 30 days, it's harvested.

98

10 Drying:

The harvested fresh Golden Grass is dried

Packing:

Dried grass is packaged in small packages and

sold over the market counter. Other dried grass

is packaged in large packages and sold to

pharmaceuticals companies as raw materials.

11

12

Products

1) Chinese Golden Grass: Cultivate, process, market and distribute to:

Raw Material: Pharmaceutical companies

Retail stores: drug stores, supermarkets, and franchise stores

2) Organic and Specialty Food (wholesale distribution):

Sales agent or distributor for third-party producers.

Largest wholesale distributor of organic and specialty

food in Heilongjiang Province (population 37 million)

3) Specialty Beverage Products (derived from Chinese Golden Grass):

Commercial launch slated for first half of 2010

(See New Product Launches slide for more information on what could

be a blockbuster product launch for Nutrastar this year)

Sales & Distribution

13

Currently has 115 dedicated sales personnel and 9 major distributors covering 10 provinces in China delivering:

1) Large-pack products to pharmaceutical companies 2) Small-pack products to drug stores, supermarkets and franchise stores Major distributors located in Shangdong, Zhejiang, Guangdong, Sichuan, Shang Xi province and Beijing, with access points throughout China.

Direct sales staff and distributors participate in large trade shows and offer seminars and lectures to local communities

Shaanxi

Beijing

Heilongjiang

Shandong

Sichuan

ChongqingHunan

Hubei

Jiangsu

Shanghai

Zhejiang

Fujian

Guangdon

g

Major distributors located in Shangdong, Zhejiang, Guangdong, Sichuan, Shang Xi province and Beijing, with access points throughout China.

Extremely High Margins

14

44%

62% 65%70%

78%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2006 2007 2008 2009 Q1 2010

Gross Margins

China Growth Partners expects margins to remain high as launch of Specialty Beverage Products and other higher margin small-pack products are distributed to drug stores, supermarkets, and franchise stores.

Past performance does not necessarily predict future results.

Revenue Breakdown

15

79%

21%

2009 Revenue

Chinese Golden Grass

Organic & Specialty Foods

71%

29%

2009 Golden Grass Sales

Raw Material Retail Stores

89%

11%

1st Quarter 2010

Chinese Golden Grass

Organic & Specialty Foods

Management: “We anticipate incrementalrevenue and earnings growth of our highermargin Chinese Golden Grass products .”

High Growth Trends

16

$4.3

$9.2

$13.0

$15.3

$1.7

$5.2 $5.8

$7.7

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

2006 2007 2008 * 2009

Revenue (in millions of USD) Net Income (in millions of USD)

Nutrastar experienced impressive growth during the weakest global economy in decades.Demand for Chinese Golden Grass only increased during this period.

*Excludes one-time non-cash merger costs of $2.1 million USD in Fourth Quarter 2008

Revenue and Net Income in Millions of USD

Past performance does not necessarily predict future results.

High Growth Trends

17

* Excludes $2.1M in one-time non-cash charges in 2008 related to the merger

Nutrastar International has experienced high growth from 2007-2009. Average periodrevenue growth was 30%, average gross profit growth was 38.5%, average net incomegrowth was 22%, and average growth in income from operations was 31.5%. Net cashfrom operating activities has grown by a very impressive 43.5% in the period.

Projected 2010 Growth:Q1 2010 Net income was approximately $2.72 M USD, a 25.3% increase over the same period last year and puts the company well on track to meet their $9M USD in net income target for 2010. EPS in Q1 was .19/share.

2007 2008 Growth 2008 2009 Growth

Revenue $9.2M $13M 41% $12.9M $15.3 18%

Gross Profit $5.7M $8.4M 47% $8.4M $10.8M 28%

Net Income $5.2M $5.8M* 11.5% $5.8M* $7.7M 33%

Income From Operations $5.2M $6.7M 30% $6.7M $8.9M 33%

Net Cash Provided by Operating Activities

$4.5M $6.5M 44% $6.5M $9.3M 43%

EPS (fully diluted) ----- ----- ----- .49* .58 20%

*Excludes one-time non-cash merger costs of $2.1 million in Fourth Quarter 2008

Revenue, Gross Profit, Net Income, Income from Operations, and Net Cash Provided by Operating Activities below all in millions of USD.

Past performance does not necessarily predict future results.

Low AR Balance

18

Most Chinese pharmaceutical and nutraceutical companies have large Accounts Receivable balances that sometimes carry over quarter to quarter, with long DSO (Days Sales Outstanding) periods.

Nutrastar has an Accounts Receivable balance that is the lowest China Growth Partners has seen in China’s nutraceutical sector. For 2009 the company reported $15.3M USD in sales, and the AR balance on 12/31/2009 was a mere $215,000.

This extremely low AR balance is because many customers pay up front with cash for Nutrastar’s products. China Growth Partners believes this fact confirms the market’s large supply-demand imbalance for Nutrastar’s products.

The market supply leadership position (and power) that Nutrastar has can be seen in their continually low AR balances, the willingness of customers to pay cash in advance for their products, and gross margins > 70%.

19

Strong Balance Sheet

March 31 December 31

2010 2009

( Unaudited ) ( Audited )

ASSETS

CURRENT ASSETS

Cash and cash equivalents $ 23,289,425 $ 20,115,677

Accounts receivable, net 367,966 215,486

Inventories 538,700 616,073

Prepayments and other receivables 10,971 251,235

Total current assets 24,207,062 21,198,471

OTHER ASSETS

Intangible assets, net 2,638,241 2,747,402

Property, plant and equipment, net 10,261,227 10,396,507

Total assets $ 37,106,530 $ 34,342,380

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable $ 55,599 $ 863

Other payables and accruals 430,056 453,504

Payable for intangible asset 878,953 878,709

Income tax payable 277,183 319,873

Due to related parties 49,807 49,794

Acquisition payable 8,736,833 8,736,833

Total current liabilities 10,428,431 10,439,576

Total liabilities 10,428,431 10,439,576

Common stock, $0.001 par value, 190,000,000 shares authorized, 14,312,731 and 14,297,731 shares issued and outstanding 14,313 14,298

Additional paid-in capital 4,761,251 4,715,891

Statutory reserves 1,344,401 1,341,687

Retained earnings 19,576,360 16,858,012

Accumulated other comprehensive income 981,774 972,916

Total shareholders' equity 26,678,099 23,902,804

Total liabilities and shareholders' equity $ 37,106,530 $ 34,342,380

Balance sheet very strong with $23.3M cash, total liabilities $10.4M, current ratio 2.3, $19.6M in retained earnings, and very low AR balance.

2010 Outlook

20

Management has made positive statements for 2010 growth:

“During 2010, Nutrastar plans to further increase total revenue generated through sales ofChinese Golden Grass, both through increased sales of product processed and packagedfor the consumer marketplace, as well as sales of raw material to the pharmaceuticalindustry. The Company expects that further product awareness, widespread availabilityand increased health awareness among Chinese consumers will drive consumer adoptionand sales for the Company's Golden Grass.”

and…

“A major initiative of Nutrastar's future growth strategy is the introduction of new, value-added products targeting multiple downstream markets, including mass consumer,nutraceutical and pharmaceutical markets. After successfully introducing the smallpackage consumer cordyceps products, the Company's growth plan during 2010 willinclude introducing a new branded specialty beverage product known as "Golden GrassEnergy Drink". Commercialization of Golden Grass Energy Drink is scheduled for thesecond quarter of 2010, targeting affluent, professional, athletic and elderly consumers.In support of its growth strategies, Nutrastar plans to increase annual production capacityfrom its current capacity of 55 tons to 65 tons by the end of 2010.”

New Product Launches

21

2010 will be an exciting year for Nutrastar International with the launch of their new Specialty Beverage Product as well as a new Cordycepin Compound.

Golden Grass Energy Drink

“Golden Grass Energy Drink”This specialty beverage targets affluent, professional, athletic and elderly consumers. Marketable health benefits include enhancing immunity, reducing fatigue, and increasing circulation.

CordycepinChemical Name: 3'-Deoxyadenosine

Cordycepin CompoundEastern and Western studies agree that Cordycepin is an agent that has shown promise in cancer research (specifically in tumor size reduction) and in boosting the immune system.Investors may wish to search the Internet for “Antitumor effects of Cordycepin”, “Cordycepin and Cancer”, and “Cordycepin and Immune System” to appreciate the potential of this new compound for Nutrastar.

New Product Launches

22

China Growth Partners believes the launch of the “Golden Grass Energy Drink” has the potential to add substantial revenues and income to the company in 2010-2011.

The target market is more affluent, professional/upwardly mobile consumers and the rapidly-growing middle class that are turning China into more of a consumer-based economy.

China’s consumer market is on track to become #1 in the world.

Credit Suisse expects China’s share of global consumption to increase from 5.2% at $1.72 trillion USD to 23.1% at $15.94 trillion USD by 2020, overtaking the US as the largest consumer market in the world. (click to article)

As China’s rural population moves into urbanized areas, “stress and fatigue” have been reported by 88.9% of respondents in an April 2010 Beijing-based survey. (click to article)

Nutrastar’s “Golden Grass Energy Drink” will be marketed as a fatigue-fighter to one of China’s most fastest growing demographics: The increasingly stressed and fatigued new middle class.

Distribution Expansion

23

The company’s previous sales depended heavily on the sales of large-pack products to pharmaceutical companies.

To support rapid growth in sales and revenue, Nutrastar plans to expand their distribution network by selling small-pack, higher margin products through drug stores, supermarkets and franchise stores.

Nutrastar maintains constant communications with distributors to stay informed regarding consumer preferences and market trends in order to develop new products, and organize monthly product promotion meetings with distributors to increase sales of small package products.

Shaanxi

Beijing

Heilongjiang

Shandong

Sichuan

ChongqingHunan

Hubei

Jiangsu

Shanghai

Zhejiang

Fujian

Guangdon

g

Currently expanding to a nationwide reach for rapid growth in sales.

Strong Management

Ms. Lianyun Han---Chief Executive Officer, President and Chairperson, with over 10 yearsexperience in green and organic food business; Shuaiyi Group Founder, Chief ExecutiveOfficer, President and Chairperson; Heilongjiang Daily Reporter, Director, Senioreconomist; Harbin University Bachelor Degree.

Ms. Xue Wang---CFO, was a financial executive at Harbin Zhongchang Clean EnergyDevelopment Co., Ltd., a company engaged in the recycling energy business. Ms. Wangjoined our subsidiary Heilongjiang Shuaiyi New Energy Development Co., Ltd. in 2007 asFinancial Manager and became Financial Controller in 2009. She holds a Bachelor'sdegree in Accounting from Harbin University of Commerce.

Mr. Lichen Wang,---CTO, Shuaiyi Group Chief Technology Officer, Institute of Edible Fungus ofThree provinces in Northeast China Technician, Deputy Director: Heilongjiang August 1stLand Reclamation University Bachelor Degree majored in Edible Fungus.

Mr. Hongbing Hua,---CMO, JDB Group Planning General Counsel, instrumental in Wang LaoJi Herbal Tea becoming a nationwide beverage brand; Beijing Huiyuan Beverage andFood Group Co., Ltd. Vice President & Planning Director, instrumental in Huiyuanbecoming the No.1 juice brand in China since 2001.

There is no family relationship between Xue Wang and Lichen Wang.

24

Experienced, strong management team. Management ownership in NUIN is approximately 66%.

Market leader and world’s largest producer of Chinese Golden Grass

High barriers to entry for potential competition

Extremely efficient, patented cultivation process

Very high margins likely to continue with launch of higher margin products

High management ownership (66%)

Strong balance sheet with $23M cash on hand and consistently cash flow positive

20% capacity expansion by end of 2010

Expanding sales and distribution network

Low AR balance, cash customers, confirms strong demand for products

High margin “Golden Grass Energy Drink” launch imminent

Management has repeated to us their confidence in “Make Good” targets of $9M in net income for 2010 and $11M in net income for 2011

China Growth Partners expects fully diluted earnings per share for 2011 to be .61-.65, (at minimum), and assigns a pe multiple of 10 . As a result we believe the stock should be trading at $6.30+ a year from now.

China Growth Partners is investing 50% of our fee in NUIN shares in the open market for a 12 month minimum hold.

Summary & Price Target

25

China Growth Partners finds Nutrastar International extremely undervalued at the current trading price and assigns a 12 month price target of $6.30/share based on the following:

Summary & Price Target

26

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

1/20/2010 2/20/2010 3/20/2010 4/20/2010 5/20/2010

NUIN Closing Price Chart

Closing Price

China Growth Partners believes markets are often inefficient and may persistently misprice securities for long periods of time, but that protection against this can be found in growth. As a company grows the value increases, and eventually the market price will increase to reflect that value.

While based on our research and the information in this presentation China Growth Partners believes Nutrastar International’s current shareprice to be undervalued and assigns a 12 month share price target of $6.30/share, no assurances can be made that our price target will bemet. Potential risks and uncertainties include, but are not limited to, such factors as unanticipated changes in product demand, interruptionsin the supply, downturns in the Chinese economy, changes in applicable laws and/or regulations, and other information detailed from time totime in the Company's filings and future filings with the United States Securities and Exchange Commission.

Corporate Address

7/F Jinhua Mansion

41 Hanguang Street

Nangang District, Harbin, 150080

Peoples Republic of China

Phone: (86) 451-82287746

Web site: http://www.syxny.net

Investor Relations

Howard Gostfrand

American Capital Ventures

Phone: (305) 918-7000

Email: info@amcapventures.com

27

Contacts